I just read what stepped up means. Did you inherit the home? I get the impression step-up is in effect if/when you sell the home. With the laws that have changed, concerning capital gains, I think you do need to talk to a Tax CPA.
Me, I was told when we bought our house to keep every bill for improvements we made. The cost of those improvements could lower what we pay in capital gains. We bought our house at 25k. By the time we remodeled it, it was worth 50k.
Need more information. Were you a paid care giver who received something from an inheritance? A family member caregiver, e.g., spouse, child? You posted under "family caregiver" so I assume you are family. And stepped-up basis of what? You said you received payment. What does that mean? If a person inherits, for example, stocks, the "cost" of the stocks for figuring capital gains at the time of sale is the value at the time of the inheritance, the "stepped up" basis. You need accurate records of the value of everything at the time of the death of the person. Normally if a will has gone through probate there should be a list of all property and its value at the time of death, so that is where you would find the stepped up basis when you go to sell that property. Same would be true for a house s for stocks -- if you sell an inherited house, the capital gain would be figured not on the original cost of the house but on its valuation at the time of death. It's more complicated if the property was held jointly, however.
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Me, I was told when we bought our house to keep every bill for improvements we made. The cost of those improvements could lower what we pay in capital gains. We bought our house at 25k. By the time we remodeled it, it was worth 50k.
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